Chrylser Profit Reached, first time in 5 years

May 3, 2011, 08:42 by R.E. Christian

Chrysler reported a first-quarter profit of $116 million, its first advance into the black since emerging from bankruptcy in 2009.

Net income in for the first three months of 2011 was $116 million, compared to a net loss of $197 million in the first quarter a year ago.

Chrysler officials attributed the improved operating performance to increased volumes and positive pricing and mix, offset in part by increased advertising investments and industrial costs tied to the introduction of newly launched models.

Chrysler Group's improved sales and financial performance in the first quarter "show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers," said Sergio Marchionne, Chrysler Group LLC chief executive officer.

"These results are a testament to the hard work and dedication of our employees, suppliers and dealers, all of whom are helping Chrysler create a new corporate culture built on the quality of our products and processes and simple, sound management principles," Marchionne said. "We remain focused on delivering great products to our customers and continuing to achieve the sales and financial targets outlined in our 2010-2014 business plan."

Swedish luxury automaker Saab reported a net loss of $113 million for the first quarter but sales showed signs of an improvement, The Local reported.

The report indicated March was the best sales month for Saab since it became independent of U.S auto giant General Motors.

"It's in line with our forecast," Saab spokesman Eric Geers told the TT news agency. "In March we had the best sales month since Saab started as an independent company."

Source: UPI